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Original post by fg45344
Can I refuse to take out a pension and just invest in super blue chip stocks that will survive for the next 40 years....something like Coca Cola, Disney, Wal-Mart, Visa etc etc and just live off the dividends?
What is wrong with that strategy?
What is wrong with that strategy?
Why not both tho
Original post by Retired_Messiah
Why not both tho
Because then I need to pay into the pension.
Even if my employer pays in the same amount, surely in 40 years time the value of the pound would have halved because of inflation.
Like these super blue chips will last the 40 years, well they are the most likely to survive 40 years. Most of the companies sitting in the Dow 30 except the technology ones which are a bit more at risk.
What do you think pension funds do with your money?
What your suggesting is literally what pension funds do, invest your money in stocks (you can even select the risk level). The reason you do it in a pension fund rather than on your own - work matches your investment, and you have people who's job it is to manage the fund and investments, not just you doing it as a sideline.
What your suggesting is literally what pension funds do, invest your money in stocks (you can even select the risk level). The reason you do it in a pension fund rather than on your own - work matches your investment, and you have people who's job it is to manage the fund and investments, not just you doing it as a sideline.
You do realise that's more or less what a pension is.
The answer is that yes, under Tory mantras of personal responsibility and hard work for some reason being the determinant of whether you get to eat when you're old, you do have to pay a statutory minimum amount into a pension, and your employer has to pay on your behalf, which is the same thing. This amount is set to increase considerably over the coming five years.
The answer is that yes, under Tory mantras of personal responsibility and hard work for some reason being the determinant of whether you get to eat when you're old, you do have to pay a statutory minimum amount into a pension, and your employer has to pay on your behalf, which is the same thing. This amount is set to increase considerably over the coming five years.
Original post by NW86
What do you think pension funds do with your money?
What your suggesting is literally what pension funds do, invest your money in stocks (you can even select the risk level). The reason you do it in a pension fund rather than on your own - work matches your investment, and you have people who's job it is to manage the fund and investments, not just you doing it as a sideline.
What your suggesting is literally what pension funds do, invest your money in stocks (you can even select the risk level). The reason you do it in a pension fund rather than on your own - work matches your investment, and you have people who's job it is to manage the fund and investments, not just you doing it as a sideline.
But what if I can do a better job than them?
What if they invest in a company which goes bust?
40 year is a long time, not even some of the companies in the FTSE 100 are immune to 40 years. Only super blue chips like Coca Cola could survive that and even then you never know.
Original post by scrotgrot
You do realise that's more or less what a pension is.
The answer is that yes, under Tory mantras of personal responsibility and hard work for some reason being the determinant of whether you get to eat when you're old, you do have to pay a statutory minimum amount into a pension, and your employer has to pay on your behalf, which is the same thing. This amount is set to increase considerably over the coming five years.
The answer is that yes, under Tory mantras of personal responsibility and hard work for some reason being the determinant of whether you get to eat when you're old, you do have to pay a statutory minimum amount into a pension, and your employer has to pay on your behalf, which is the same thing. This amount is set to increase considerably over the coming five years.
there is no legal minimum amount you must contribute to a pension :s
Original post by fg45344
Can I refuse to take out a pension and just invest in super blue chip stocks that will survive for the next 40 years....something like Coca Cola, Disney, Wal-Mart, Visa etc etc and just live off the dividends?
What is wrong with that strategy?
What is wrong with that strategy?
There is no legal requirement to pay into a pension however it would be a huge financial mistake not to.
Your posts show a complete lack of understanding or knowledge of how pensions work which gives even more reason why you should just accept your company's default option of pension contributions.*
Original post by Reue
There is no legal requirement to pay into a pension however it would be a huge financial mistake not to.
Your posts show a complete lack of understanding or knowledge of how pensions work which gives even more reason why you should just accept your company's default option of pension contributions.*
Your posts show a complete lack of understanding or knowledge of how pensions work which gives even more reason why you should just accept your company's default option of pension contributions.*
Yes, but I understand how the markets work....so I can work on my own and do ok.
Original post by fg45344
Yes, but I understand how the markets work....so I can work on my own and do ok.
Clearly not
Original post by Reue
Clearly not
Believe what you want. I have the knowledge and training in finance to do ok. I've been playing the markets for a year now with my own money, a significant portion.
I can buy stocks in Visa and Coca Cola and other super blue chips and hold them for 40 years reinvesting dividends and come out ok.
The power of compounding works miracles over time.
Original post by Reue
Clearly not
If you want some investing tips, feel free to PM me. You could learn a bit.
Original post by fg45344
I could even take out a SIPP and put my own investments in.
I was suspicious at first but given that response I'm just gonna flat out call troll on this one.*
Original post by Reue
I was suspicious at first but given that response I'm just gonna flat out call troll on this one.*
Do you even know what an SIPP is? Jheez.
Everything to you is a troll.
Not wasting my time with you.
Original post by fg45344
Do you even know what an SIPP is? Jheez.
Everything to you is a troll.
Not wasting my time with you.
Everything to you is a troll.
Not wasting my time with you.
4/10
You should always take your company pension because the employer contributions are free money that is instantly a better return than anything else you'll expect to get within a decade.
Most modern pensions will allow you to make choices about which funds the pension is invested in, though the choice can be more or less restricted depending on the provider. If you subscribe to the theory of active management, it's probably worth pointing out that this money could be managed by someone who actually does this full time for a living - they've not just been "playing the markets for a year" - they're probably better at this than you are.
If you're determined to take greatly increase your risk and aren't happy with your provider's fund options, you can investigate transferring money out from the company pension provider to your own SIPP on a regular basis so that you keep your employer contributions.
You should read Smarter Investing by Tim Hale.
Most modern pensions will allow you to make choices about which funds the pension is invested in, though the choice can be more or less restricted depending on the provider. If you subscribe to the theory of active management, it's probably worth pointing out that this money could be managed by someone who actually does this full time for a living - they've not just been "playing the markets for a year" - they're probably better at this than you are.
If you're determined to take greatly increase your risk and aren't happy with your provider's fund options, you can investigate transferring money out from the company pension provider to your own SIPP on a regular basis so that you keep your employer contributions.
You should read Smarter Investing by Tim Hale.
Original post by fg45344
Can I refuse to take out a pension and just invest in super blue chip stocks that will survive for the next 40 years....something like Coca Cola, Disney, Wal-Mart, Visa etc etc and just live off the dividends?
What is wrong with that strategy?
What is wrong with that strategy?
well you can but I wouldn't advise it if you control your own funds you would make no market plays stuff you keep in a strongbox to sell for a profit by the time that day comes
your market experience is ok and I have a solid set of investments
45%-in shares
50%- in bullion
5%- in a nice diamond
I am going to make room for more quality pieces to store mainly pre 50's major brand stuff in clean condition
Agree with the above posters, for me: Nothing wrong at all with having your own managed plans for your retirement. Many do and its a wise idea, investing, property, private pension schemes etc.
But its stupid to 100% ignore 'free money'. Think of it like this: that money is not actually free, its money that the company has budgeted for, and is effectively part of your salary package, just a part that comes with a strict condition. If you are turn down this free money, you are basically saying no to a proportion of your salary.. and earning less from your job.
Take it from me, as a person who runs their own business, I would kill for a boss would would match my investments 100% as there is no easy and simple way that I can ever build my wealth that efficiently and quickly by myself.
Max out as much money as you can get from your company pension.. and then keep going with your investing/personal plans on the side = win/win.
But its stupid to 100% ignore 'free money'. Think of it like this: that money is not actually free, its money that the company has budgeted for, and is effectively part of your salary package, just a part that comes with a strict condition. If you are turn down this free money, you are basically saying no to a proportion of your salary.. and earning less from your job.
Take it from me, as a person who runs their own business, I would kill for a boss would would match my investments 100% as there is no easy and simple way that I can ever build my wealth that efficiently and quickly by myself.
Max out as much money as you can get from your company pension.. and then keep going with your investing/personal plans on the side = win/win.
Original post by fg45344
Can I refuse to take out a pension and just invest in super blue chip stocks that will survive for the next 40 years....something like Coca Cola, Disney, Wal-Mart, Visa etc etc and just live off the dividends?
What is wrong with that strategy?
What is wrong with that strategy?
If you have options for a company pension, you would be a fool not to accept it. It is after all money for nothing. You also get a tax rebait from money you pay into your pension. So for every £1 you put in, the government will give you 20p (or there abouts) as tax relief.
All a pension is, is a tax free wrapper around any investment you like. So you can still invest in dividend shares if you want. That said, you are looking for long term growth and a financial adviser may well recommend that you would be better off looking for growth rather than earnings.
Good luck!
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